The Arbitrage Fund Class R (ARBFX)

Overview

This fund focuses on investment strategies that revolve around equity securities of companies undergoing various corporate reorganizations, including but not limited to mergers, takeovers, tender offers, leveraged buyouts, spin-offs, and liquidations. By committing at least 80% of its net assets into these securities, the fund operates with the primary goal of capitalizing on the opportunities presented by these corporate activities. Targeting both U.S. and international companies, the fund exploits the financial dynamics of corporate reorganizations, employing a merger arbitrage approach designed to profit from the successful conclusion of such events.

Products and Services

• Mergers Arbitrage Investments

  Focuses on investing in equity securities of companies involved in mergers. By anticipating the outcomes of these mergers, the fund seeks to achieve profits based on the differential between the market price before merger completion and the value estimated at the merger’s conclusion.

• Takeover Strategies

  Investments in companies undergoing takeover bids form a crucial part of the portfolio. The fund aims to profit from takeovers by acquiring stocks at prices that are anticipated to rise upon successful completion of the takeover process.

• Tender Offer Arbitrage

  Specializes in investing in securities of companies subject to tender offers, where shareholders are given the option to sell their shares at a premium to the current market price. The fund capitalizes on this premium, aiming to secure profits from the spread between the market price and the offer price.

• Leveraged Buyouts (LBOs)

  Targets companies involved in leveraged buyouts, where a significant portion of the purchase price is financed through borrowing. The fund aims to invest in equity securities that may benefit from restructuring and operational improvements post-LBO, potentially leading to increased market valuations.

• Spin-offs and Liquidations

  Engages in opportunities presented by companies spinning off divisions or assets into separate entities or undergoing liquidation. These situations often result in securities being undervalued or overlooked by the market, providing unique investment opportunities for the fund.